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Money Thread

Discussion in 'Hangout' started by Bala, Sep 23, 2010.

  1. Bala

    Bala Esperto

    Messages:
    1,070
    Villupuram
    Ramesh,I invest Rs.20000 every year in ICICI life stage pension plan and I don't trust ICICI to add anything more in the same plwn.
    Ravi, is PPF available in post office. In case if I invest Rs.10000 every month in ppf, that will be shown as an additional income now and I will end up paying one third, I.e Rs.40000 towards IT now itself :(
    Another question guys,now if a monthly chit is dislosed even while paying and am already paying tax for the same will I end up paying IT again when it matures?
  2. Ravi

    Ravi Staff Member Janitor

    Messages:
    6,001
    Bangalore
    Grande Punto 1.3
    Yes PPF account can be opened in post office as well, but I would suggest to open in bank, SBI or ICICI, to have better facilities than post office. All benefits are same.
    Also, you can invest max 1L per year (80 C limit) in PPF.
    And everything in PPF is tax free. It falls under EEE - Exempt at Entry, Exempt on interests and Exempt on withdrawl.
  3. Bala

    Bala Esperto

    Messages:
    1,070
    Villupuram
    Thanks Ravi.
    80c benefit is already availed with LIC insurance policies,where I pay Rs.1,10,000 a year towards premiuim.So entry tax would apply for investment in ppf I believe since the money invested is anyway an income now.
  4. Ravi

    Ravi Staff Member Janitor

    Messages:
    6,001
    Bangalore
    Grande Punto 1.3
    Stop this investement (if you can), LIC is making hell lot of money, with your money :).
    I am little confised here, what is entry tax?
    Money invested in income - This is true, because you can't invest if you have not earned :), so this has to be income from somewhere.
    1 person likes this.
  5. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,243
    Chennai
    Linea 1.3
    I agree. LIC should be considered only when you want to buy a true term assurance plans to mitigate the risks. LIC shouldn't be seen as an investment option just to avail the 1L exemption.
    1 person likes this.
  6. Bala

    Bala Esperto

    Messages:
    1,070
    Villupuram
    Yes, LIC policies should not be seen as an investment, it was all started by Dad (old school and ignorant too, passing on the ignorance to me :().But won't stopping the Lic policies after paying for a decade deny me the benefits of the purpose of insurance, God forbid if something happens. Returns in LIC is so bad that 2 lakh Rs I had paid as premium for the past 15 years has matured and given me Rs 2 lakhs and 40000 :(
    I talked about entry tax, since am not a salaried individual and hence only the income I have diclosed is accounted and an additional 1 lakh rupee invested in ppf would become an extra income and attract extra tax.
    I spoke about post office because am anyway going there to receive the matured amount from kvp and I get there and invest back there itself.
    Thanks guys for valuable ideas.
    1 person likes this.
  7. Bala

    Bala Esperto

    Messages:
    1,070
    Villupuram
    Your expert opinion needed again guys.
    Am selling off an ancestral property,agricultural land for may be 25 l
    1.Do I have to inform my Dad's auditor (it's in his name), or if money received on selling agricultural land is not taxable shall we leave it as such (auditor is not a good person, he might find ways to liquidate that money, he has already done that once)
    2.Am intending to invest the entire amount in a bank in my mother's account (she is not an Indian citizen but has an account).Which bank gives the maximum interest rate for a senior citizen and which has an option where in the deposit can not be with drawn at all (she is a naive person and if someone asks her she might give that money too.).I do not want to invest in my name since am already paying a heafty tax and the interest from this fd will add to the tax.
    3.Which bank gives a compound interest?.
    Thanks in advance.
    I have taken your advice on ppf and starting one on 2 april.
    THANKS
  8. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,243
    Chennai
    Linea 1.3
    I recommend State Bank of Travancore.

    But, the amount can be withdrawn if the depositor wants to. Not sure if there is any such deposit is available where you can't withdraw it.
  9. Bala

    Bala Esperto

    Messages:
    1,070
    Villupuram
    Thanks Ramesh
    It's ok if the fd can not be locked for ever, but it is there an option where it can be locked for atleast a period of 5 to 10 years?
  10. asimpleson

    asimpleson Esperto

    Messages:
    3,000
    Heptanesia
    Linea 1.3
    1) One way to protect her investment from predators is by splitting the amount into multiple smaller bankable investments, with co-signee person for her, someone smart whom you can trust.

    2) Or re-investing in another property with 5-10 year goals of EMI payments for top up loan wherein the amount is secured in ways of bank loan. Maybe yourself or EMI payer can benefit in terms of tax returns.

    I have heard/read of reverse mortgage against property but that may not be possible in this case. The above two solutions can again seem bit too far fetched I know.:confused:

    Finding a trusted co-signer in family for FD while redeeming amount with two signatures atleast looks good. I suppose that will be a problem somehow, is it? This arrangement can have drawbacks too I guess.

    It's an interesting problem you have there, one that is not newly heard of but unique in other ways. Hope you find a good solution soon.
    1 person likes this.

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